Towards the expansion of the functional dairy market: Determining donkey milk value propositions and identifying possible consumers

Abstract

The demand for donkey milk has increased due to consumers’ growing preference for functional dairy beverages. As the commercial value of donkey milk and its marketable qualities still need to be discovered by many consumers, information on how to market this functional dairy product is needed. Hence, this study aimed to determine marketable value propositions, competitive pricing levels for donkey milk, and possible early adopters. Using data collected in the Mahikeng Local Municipality in South Africa, consumers’ willingness to pay for donkey milk was determined, and a double-bound probit model was utilized to determine socio-economic characteristics that could serve as a target market for donkey milk. The study found that consumers were willing to pay a 10 % premium for donkey milk, a lower percentage than premiums reported in other parts of the world where donkey milk has been commercialized. The study's findings revealed that the marketing of donkey milk should target the wealthy and young people in South Africa. However, the industry's growth shall likely be stalled by the current heritage value proposition it is known for, which attracts a relatively small premium. This study recommends that consumers be furnished with scientific evidence that substantiates the nutraceutical properties of donkey milk so that this becomes an equally known value proposition that results in a higher premium, as reported in other developed markets.